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Real estate volatility and economic stability : An East Asian perspective

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Frame of Image his book, “Real Estate Volatility and Economic Stability: An East Asian Perspective,” offers a comparative research on housing market cycles and their determinants observed from six East Asian (EA) countries – China, Hong Kong, Japan, Korea, Singapore and Taiwan. The underlying premise of this study is that the housing sectors in these EA countries will exhibit both similarities and dissimilarities with those in the United States and European countries in terms of market conditions and institutional attributes, and that a careful comparative study of these countries will yield a value-add in advancing our understanding as to workings of housing market in this region and as to effectiveness of various policy instruments adopted to combat excessive, and often contagious, volatility from the housing sector. To that end, the authors conducted a three-phase research: (1) documenting the episodes of housing price boom-bust during the last four decades from these countries; (2) performing data analyses on patterns and determinants of housing price dynamics in the region; and, (3) investigating institutional factors of relevancy observed from those countries. As well-known, the selected counties experienced an explosive and sustained output growth in the post World War II era. Facing the rapid industrialization and the urbanization that came with it, the primate cities and other major urban areas in the region often had to deal with severe shortage of housing and other real estate sp


Full Text
Title Real estate volatility and economic stability
Similar Titles
Sub Title

An East Asian perspective

Material Type Reports
Author(English)

Cho, Man; Kim, Kyung-Hwan; Renaud, Bertrand

Publisher

Seoul:Korea Development Institute

Date 2012-12
Series Title; No Research monograph / 2012-01
Pages 205
Subject Country China(Asia and Pacific)
Hong Kong(Asia and Pacific)
Japan(Asia and Pacific)
South Korea(Asia and Pacific)
Taiwan(Asia and Pacific)
Language Korean
File Type Documents
Original Format pdf
Subject Economy < Economic Conditions
Holding Korea Development Institute

Abstract

East Asia, which houses 22% of the total world population, has been experiencing an explosive and sustained output growth in the post World War II era. Besides the rapid economic growth, the region is also characterized by a high population density, with a density of 350 persons per square mile, about three times higher than the world average. In the process of the growth, and the industrialization and urbanization that came with it, the primate cities and other major urban areas in the region often faced with chronic shortage of land and real estate space, causing a rampant appreciation of property value. That, in turn, contributed to a rise of speculative demand for housing and unaffordable shelter for low and moderate income households. In the supply side, various natural as well as man-made constraints made the supply response inelastic and exacerbated the price volatility and housing affordability. Furthermore, thanks to the liberalization of financial markets, the residential mortgage lending sector has been rapidly evolving, which raised the affordability of home purchase for lowincome and less-creditworthy borrowers on the one hand but also made it more likely to have an inter-sectoral contagion between housing and macro-economy in those countries, both in upturns and in downturns. (The rest omitted)